Auto Sector - Prefer bottom-up ideas to recovery themes - Emkay

- Macro-recovery plays factoring a very strong recovery in FY14/15; Possibility of disappointment remain high as signs of recovery remain elusive

- Remain cautious on OEM demand recovery; our channel checks still suggest weak consumer sentiments and no uptick in footfall/conversions

- Prefer bottom up ideas where valuations are less frothy to macro recovery themes - BUY HMCL, EXID, AMRJ, MSS

- ACCUMULATE MM & TTMT as they are likely to disappoint lesser than recovery plays like AL, MSIL in the near term

- We believe that a good monsoon and populist schemes ahead of the elections would mean rural recovery would be faster than recovery in urban India

Source : Equity Bulls

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